[Koo-Sang Column] What can be the paradigm of the 2020 car industry

The year of 2016 is finally arrived, and it has been 16 years since the human beings entered into the 21st century. Historically being seen, the characteristics of the century are emerged after 10 to 15 years after the beginning of the new century.

Virtually, it can be found if we take a closer look at the last 20th century. The typical characteristics of 20th century can be summarized as a popularization of an automobile and the development of the mass production method(Fordism), and both were started to be introduced between 1910 and 1915.

Being no doubt, the birth of computer and the development of the communication methods now blossom after their first introduction in last part of the 20th century. It is fact that the introduction of the mass production method occurred in automotive industry and hence the establishment of capitalism triggered by huge capital enterprises absolutely contributed to leading those development of digital technologies.

Throughout the process of the development written above, massive amount of new cars are released every year with the technology that has been developed for over 120 years and new designs. New cars are developed as being faster, more comfortable and more beautiful than old ones.

This development simply does not suggest the pursuit of being better. It can be explained as a movement made by a big paradigm. Then, what does paradigm exactly mean?

Paradigm was first introduced in The ‘Structure of Scientific Revolutions’ published in 1962, and it refers to an idea, a value, or a principle which drives a whole era.

In other words, the idea or value that many people in that era believe and the value that rules the era can be called as ‘paradigm’. For instance, the law of gravity is a natural law to be accepted.

However, before the fact that the earth is round and it revolves around the sun was found by Galileo Galilei, the people lived then time had believed that the earth is flat and the sun revolves around the earth. It was the ‘paradigm’ which ruled the era’s idea, value, and even science.

Then, what is the paradigm which leads the last 120 years of the automobile history? Of course, the paradigm has been changed since of the change of value.

The very first car invention was started in Europe, especially in Germany. But, it could not escape from the structure of a carriage. The FR structure, today’s car structure front that is engine and rear wheel drive car, and the development of the practical car technology were emerged in France.

At the beginning of the 20th century, European automakers focused on luxurious and fancy design and function, while they also developed a method for massive production in order to compete against American cars based on the competitive price.

Throughout the Second World War, America became a center of the world automotive industry. However, after the Oil Shock occurred during 1970s, Japanese automakers offered a new direction of the car industry.

Moreover, an automobile has been changed into an emotional product from a simple mean of transportation based on Japanese sensuous design. Finally, in 1990, Korea started to enter into the car market, and Asia car industry started to possess larger portion of the world market.

In addition, with the development of the electronic technology, electronic components have taken larger portion, and an automobile has been changed into a comprehensive product rather than a mechanical one, which is the fact that gives a combination of the culture and emotion to the car. This ultimately leads to the birth of importance of the design based on the globalization through the various M&A among automakers in 21st century.

Recently, multipolarization has been emerged, since Chinese car industry has made sudden rise, and new car maker was born in Africa.

In addition, the birth of the autonomous car, it is seen that the automobile in 2020 will be totally different from today. Taking a look at the summary of these paradigm changes, a nation that suggests new direction of the car industry ultimately leads the whole flow of the market as it gains supremacy.

Being no doubt, car is not simply mechanical thing anymore. It is a comprehensive product with the combination of digital and IT technologies.

Therefore, the leadership of the car industry in 2020 will not depend on the size of massive production or the market volume, and a country which can suggest a new value such as Google’s autonomous car or an innovative form that can change the entire 120-year of the car history to lead a new paradigm will gain supremacy.